Fleet News

Terminator rules

THE Government has rejected pleas to remove voluntary termination (VT) clauses from hire purchase and conditional sale agreements.

Motor finance houses had lobbied strongly for the practice – where consumers can abandon HP agreements after paying only half of the borrowed finance – to be scrapped.

It is estimated VTs cost finance companies an average of £1,500 for each returned car. Consumer Affairs Minister Gerry Sutcliffe said that as a consumer protection, VTs were an ‘essential provision of hire purchase’.

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